1099 NEC form box 7 "State Income"

Forum|Forum|2 years ago
January 15, 2024
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I have a rental condo in California and I paid the management fee to an individual agent. I am going to issue the 1099 NEC form to the agent who is living in California. I put the management fee in box 1, do I also need to put this management fee in box 7 "State income" ?

The reason why I am asking is that in the past several years, I received 1099-MISC form (for rent income) with blank box 18 (State income) from my previous property management company.

TurboTax Home & Biz Windows

Carl11_2

Employee

do I also need to put this management fee in box 7 "State income" ?

If the person you are issuing the 1099-NIC to is a CA resident, or if the business you are issuing it to is registered as a business in CA, then yes, you need to include what you paid them in box 7 also. Note that you may also be required to send a copy of that form to the CA state also. Where exactly you send it, I don't know. But I would expect the program to inform you of where and how you can send it, when you print the form.